Order in the matter of Exelon Infrastructure Limited[SAT Appeal No.:207/2016

WTM/PS/47/IVD/JUNE/2016 SECURITIES AND EXCHANGE BOARD OF INDIA ORDER Under Sections 11(1), 11(4) and 11B of the Securities and Exchange Board of India Act, 1992 In the matter of Exelon Infrastructure Limited In respect of - S. No. Name Permanent Account Number 1 Exelon Infrastructure Limited AAACM2862M 2 Cementex (India) Pvt. Limited AAACC9265A 3 Mr. Srinivasa Rao Marupudi ACQPM0876L, BCDPM3124P 4 Mr. Gadde B. Tirupati Rao AHUPG9920A 5 Mr. Ravi Chakravati AJXPR4789F 6 Mr. M.Vishnuvardhan Rao ABYPM0993M 7 Mr. P R K Venkatamurthi AFQPP6066G 8 Mr. Srinivas Yadav Sher AUAPS8547G 9 Mr. Shaik Ameer Basha AEZPB3408A 10 Mr. Sree Lakshmi Marupudi ALYPM2964Q 11 Mr. Hiten Vallabhji Haria AAAPH6890H 12 A. K. Investments AANFA6009Q 13 Mr. Narendra O. Dogra AJMPD8729N 14 Mr. Kanta Anantrai Desai AAEPD6006F 15 Mr. Anjali Tukaram Sogam CGNPS1443N 16 Mr. Jitendra L. Gandhi AACPG6473H 17 Mr. Amrit L. Gandhi (HUF) AAJHA4701R 18 Mr. Gangadhara Rao Ilaparti AANPI9650F 19 Mr. Hussain M. Shaikh BSSPS2832P 20 Mr. Jigna Manish Shah ANQPS6789P 21 Mr. Sneha Pankaj Desai AIBPD1454A 22 Mr. Nishita D. Merchant AMHPM8133B 23 Dhana Energy P. Limited AACCV7693M 24 Mr. Srikrishna Vadlamudi ADNPV5504C 25 Mr. Kantilal Lakshmichand ADSPK7577K 26 Mr. Gudimetla H Sunder BMLPS9664N 27 Mr. Shivangi J. Singh AOSPS5911E 28 Ms. Dimple Pankaj Desai AUQPD3909F 29 Mr. PVS Gangadhara Rao AKYPP5600M 30 Mr. Sunil Kumar H. Pal BKSPP6938B 31 Mr. Venkata Subbarao Yarra AAPPY4270P

32 Mr. Amrit L. Gandhi AACPG5265H 33 Mr. Bhavnaben N. Mistry ALIPM5347B 34 Mr. Yentrapati Ravi ABWPY6767F 35 Ms. Parul Anupam Khanna BCUPK8420R 36 Mr. Hiten P. Shah AHAPS0889A 37 Ms. Parvathaneni Mounisha BAOPP1399G 38 Ms. Swapna Sri Tummala ALDPT7720Q 39 Mr. Satya S. Jonnavithula ACRPJ9665R 40 Mr. Piyush Naresh Kothari AEOPK1882L 41 Mr. Nrupini Jayesh Mehta BDTPM2261E 42 Mr. Mahendra Bhikaji Chile AHNPC8127G 43 Mr. Elubandi Satyanarayana DGCPS7022F 44 Mr. Rama Krishna Makkena BCKPK1101P 45 Ms. Anitha Yarlagadda ACAPY5774B 46 Ms. Salma Sharafat Khan BVSPK9348F 47 Ms. Seema Gandhi AAEPG0960B 48 Mr. Ronak Ashwin Choksi ADDPC2938D 49 Mr. Veerabhadra D. ABVPD6656R 50 Mr. Divyesh Harish Surana DALPS0578H 51 Mr. Jayesh H. Mehta AIFPM2216D 52 Mr. Shivcharan S. Kashyap ATOPK6636K

1. Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’), conducted an investigation into the scrip of Exelon Infrastructure Limited (hereinafter referred to as ‘Exelon’ or ‘the company’) for the period of December 08, 2010 to January 20, 2012 (hereinafter referred to as ‘the investigation period’), to ascertain the possible violation of the provisions of the SEBI Act, 1992 (hereinafter referred to as ‘SEBI Act’), the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003, the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as ‘PIT Regulations’) and other disclosure requirements.

2. Exelon was incorporated as a Private Limited Company on February 21, 1979, which became a deemed Public Limited Company on July 18, 1989. The Company was converted into a Public Limited Company on December 05, 1992. The Company is engaged in development of power and infrastructure projects. The scrip of Exelon is listed on Bombay Stock Exchange (hereinafter referred to as ‘BSE’).

3. The investigation alleged that the Company, its promoter (Cementex India Pvt. Limited), its 6 directors and 44 other entities (hereinafter collectively referred to as ‘group/ connected entities’) were prima facie connected to each other. The details of their connections as found in the investigation are as under: TABLE - A S.No. Name Connection with Exelon / other entities of Group 1 Exelon Company 2 Cementex (India) Pvt. Ltd. - Cementex is promoter entity of Exelon, (Cementex) - Cementex and Exelon have common directors (i.e. persons at S.no. 4, 5 and 8 in the table), - Cementex and Dhana Energy Pvt. Ltd. (entity at S.no. 10) have a common director namely Srikrishna Vadlamui (person at S.no. 9), - The Company had off market transfers with persons at S.no. 8 and 31, - Director of Cementex, Hiten Pravinchandra Shah (person at S.no. 32) is the introducer to the persons at S.no. 3, 8, 28, 30 and 31 (in the table) with Networth Stock Broking Limited. 3 Srinvasa Rao Marupudi - Director and CEO of Exelon. - He had off market transfers with persons at S.no. 11, 13, 27 and 30. - He has common address and mobile no. with entity at S.no.

11. - He also has common address, mobile no. and bank a/c no. with entity at S.no. 9. 4 Gadde B. Tirupati Rao Director in Exelon 5 Ravi Chakravati Director in Exelon 6 M.Vishnuvardhan Rao Director in Exelon 7 P. R. K. Venkatamurthi Director in Exelon 8 Srinivas Yadav Sher - Director in Exelon and Cementex (entity at S.no. 2), - He had off market transfers with entities at S.no. 2, 16, 17, 30, 31, - He has been mentioned as reference in the KYC for entity at S.no. 30 at Networth Stock Broking Limited. 9 Srikrishna Vadlamudi - Director of Cementex (S.no. 2) and Dhana (S.no. 10), - He had off-market transactions with entity at S.no. 14, - He has common e-mail ID i.e. vsrik2000@yahoo.com with entities at S.no. 2, 13 and 19, - He had banking transactions with entities at S.no. 19. 10 Dhana Energy Pvt. Ltd. - Entities at S.no. 9 and 11 are the directors of Dhana, (Dhana) - It had off market transfers with entity at S.no. 15 and 27. 11 Marupudi Sree Lakshmi - Director of Dhana (entity at S.no. 10), - He has common address and mobile no. with entity at S.no. 3, - He had off market transfers with entities at S.no.

3 and 19. 12 Rama Krishna Makkena He had off-market transfers with entities at S.no. 27 and 32. 13 Anitha Yarlagadda - She had off market transfers with entity at S.no. 3. - She shares the e-mail ID i.e. vsrik2000@yahoo.com with entities at S.no. 2, 9 and 19. 14 Satya Suryanarayana He had off-market transfers with entity at S.no. 9. Jonnavithula 15 Swapna Sri Tummala She had off-market transfers with entity at S.no. 10. 16 Mahendra Bhikaji Chile He had off-market transfers with entity at S.no. 8. 17 Gangadhara Rao Ilaparti He had off-market transfers with entities at S.no. 8, 18, 20 and 21. 18 PVS Gangadhara Rao He had off-market transfers with entities at S.no. 19 and 49.

19 Veerabhadra Rao - He had off-market transfers with entities at S.no. 11 and 18. Dandamudi - He shares same e-mail ID i.e. vsrik2000@yahoo.com with entities at S.no. 2, 9 and 13. - He had banking transactions with entity at S.no. 9. 20 Elubandi Satyanarayana He had off-market connections with entity at S.no. 17. 21 Yentrapati Ravi He had off-market connections with entity at S.no. 17. 22 Dimple Pankaj Desai - She had off-market connections with entity at S.no. 8 prior to the investigation period, - She had off-market connections with one I.K. Projects Pvt. Ltd. in which the entities at S.no. 8, 11 and 12 were the directors. 23 Kanta Anantrai Desai - She had off-market connections with entity at S.no. 8 prior to the investigation period. - She had off-market connections with one I.K. Projects Pvt. Ltd. in which entities at S.no. 8, 11 and 12 were the directors. 24 Sneha Pankaj Desai - She had off-market connections with entity at S.no. 25. - She had off-market connections with one I.K. Projects Pvt. Ltd. in which entities at S.no. 8, 11 and 12 were the directors. 25 Anjali Tukaram Sogam She had off-market connections with entity at S.no.

24. 26 Gudimetla H. Sunder He had off-market connections with one I.K. Projects Pvt. Ltd. in which entities at S.no. 8, 11 and 12 were the directors. 27 Shivcharan Shreedhar - He had off-market transfers with entities at S.no. 10, 12 and 32. Kashyap - In KYC documents submitted at TM Sanghavi, his introducer is Kamlesh Maisheri, a director of A.K. Investments (S.no. 35). 28 Jayesh Himmatlal Mehta - He has common address with entity at S.no. 29. - As per KYC, Ronak Choksi (S.no. 30) is his reference. 29 Nrupini Jayesh Mehta - Wife of entity at S.no. 28 and share common address with him. - As per KYC, Ronak Choksi (S.no. 30) is her reference. 30 Ronak Ashwin Choksi - He had off-market transfers with entities at S.no. 3, 8, 31 and 32. - He has been mentioned as reference in the KYC while opening accounts of entities at S.no. 3, 28, 29 and 31. 31 Salma Sharafat Khan - She had off-market transfers with entities at S.no. 2 and 30. - As per KYC, Ronak Choksi (S.no. 30) is her reference. 32 Hiten Pravinchandra Shah - Director of Cementex (S.no. 2) (appointment on July 18, 2012) - He had off-market transfers with entities at S.no.

12, 27 and 30. - He has appeared as witness to entities at S.no. 3, 8, 28, 30, 31 in the KYC submitted by Networth Stock Broking Limited. 33 Sunil Kumar Hariprasad As per KYC, Ronak Choksi (S.no. 30) is his reference. Pal 34 Hiten Vallabhji Haria As per KYC submitted by Networth Broking Limited, Hiten Shah (S.no. 32) is his reference. 35 A.K. Investments (Kamlesh As per KYC submitted by TM Sanghavi Brothers Brokerage Limited, Maisheri) entities at S.no. 35, 36, 37 and 38 have common address B-35, Mahavir Apt., Ratan Nagar, Borivali (E), Mumbai. 36 Amrit L. Gandhi (HUF) Introduced by Kamlesh Maisheri, director of A.K. Investments (S.no. 35) 37 Amrit L. Gandhi - Spouse of S.no. 38 as per ration card copy - He shares common phone no. 9892526271 with entities at S.no. 38, 42 and 47. 38 Seema Gandhi - Spouse of S.no. 37 as per ration card copy. - She shares common phone no. 9892526271 with entities at S.no. 37, 42 and 47. - He had off-market transfers with entities at S.no. 27 and 43. 39 Narendra Omprakash - In KYC documents submitted at TM Sanghavi, his introducer is Dogra Kamlesh Maisheri, - He is the director of A.K.

Investments (S.no. 35).

40 Jitendra Laxmichandji - In KYC documents submitted at TM Sanghavi, introducer is Kamlesh Gandhi Maisheri, - He is the director of A.K. Investments (S.no. 35). 41 Kantilal Lakshmichand - In KYC documents submitted at TM Sanghavi, introducer is Kamlesh Maisheri. - He is the director of A.K. Investments (S.no. 35). 42 Shivangi Jagmohan Singh - In KYC documents submitted at TM Sanghavi, introducer is Kamlesh Maisheri, - He is the director of A.K. Investments (S.no. 35), - He shares common phone no. 9892526271 with entities at S.no. 37, 38 and 47. 43 Divyesh Harish Surana - In KYC documents submitted at TM Sanghavi, introducer is Kamlesh Maisheri, - He is the director of A.K. Investments (S.no. 35), - He had off-market transfers with entity at S.no. 38. 44 Hussain Mohammed In KYC documents submitted at TM Sanghavi, introducer is Kamlesh Shaikh Maisheri, director of A.K. Investments (S.no. 35). 45 Parul Anupam Khanna In KYC documents submitted at TM Sanghavi, introducer is Kamlesh Maisheri, director of A.K. Investments (S.no. 35). 46 Jigna Manish Shah - In KYC documents submitted at TM Sanghavi, introducer is Kamlesh Maisheri, director of A.K. Investments (S.no. 35). - He shares common address with entity at S.no. 47. 47 Bhavnaben Nimeshbhai As per UCC details uploaded at BSE by TM Sanghavi, Bhavnaben shares Mistry Mewada common contact no. 9892526271 with entities at S.no. 37, 38 and 42. 48 Nishita Danish Merchant As per UCC details uploaded at BSE by TM Sanghavi, Nishita shares common contact no. 9619191999 with entities at S.no. 37 and 41. 49 Venkata Subbarao Yarra He had off market transfers with entity at S.no. 18. 50 Shaik Ameer Basha He is director in Exelon appointed on October 21, 2011. 51 Parvathaneni Mounisha He had off-market transfers with entity at S.no. 26. 52 Piyush Naresh Kothari He had off-market connections with entity at S.no. 8.

The promoters/ directors of Exelon along with the group entities are prima facie found to have devised a manipulative scheme, by using two pronged approach, i.e.: a. The Company and its six directors, during the period of February 10, 2011 to March 07, 2011, had issued corporate announcement of positive nature to the exchange, without any intention of implementing, which led to an increase in the price of the scrip. b. The group entities connected to the promoters/ directors of the Company had increased the price of the scrip by establishing new high price mainly through first trades at repeated instances.

4. The details of the corporate announcements made by the Company during the period of investigation are as under:

TABLE - B S.No. Date and time of Details of announcement at BSE announcement 1 February 10, 2011 a. To issue upto 10 crore equity shares of `10/- each to the (7:14:35 pm) promoters and others by way of follow on public issue, rights issue, preferential allotment, etc. b. To issue GDR and/or ADR convertible into equity shares, FCCBs, warrants, convertible into depository receipts on preferential basis upto `100 crores. c. To issue shares on QIP basis. 2 February 23, 2011 Proposal for setting up coal based thermal power plant. (3:01:17 pm) 3 March 07, 2011 a. To sub-divide the equity shares from 1 equity share of `10/- each (1:56:02 pm) into 2(two) equity shares of `5/- each. b. To issue upto 20 crores equity shares for the purpose of preferential allotment, public issue, rights issue, preferential allotment, etc. c. To issue GDR and/or ADR convertible into equity shares, QIBs, FCCBs, warrants convertible into depository receipts on preferential basis upto ` 200 crores. During the period of these announcements, the directors of the Company were Mr. Srinivasa Rao Marupudi, Mr. Gadde Butchi Tirupati Rao, Mr. Ravi Chakravarti, Mr. M. Vishnuvardhana Rao, Mr. P.R.K. Venkatamurthi and Mr. Srinivas Yadav Sher. A perusal of the share capital of the Company, revealed that the announcement pertaining to the sub-division of share capital was implemented by the Company. As regards the other announcements, the Company has not provided any information relating to their implementation.

The corporate announcements mentioned at serial number 1 and 3 in the ‘Table B’ above were in the nature of issue of fresh securities (except the announcement of stock split). However, the balance sheet of the Company as well as the shareholding pattern of the Company for the financial years ending 2010-11 and 2011-12 (available at the website maintained by BSE), revealed that the shareholding of the Company had not changed during the investigation period, except for the change after the stock split during March 2011. Further, the Company/ its directors have also not informed BSE about the non-implementation of the decisions taken in the aforesaid two meetings (held on February 10, 2011 and on March 07, 2011). These facts suggests that the Company had not implemented all the corporate announcements.

5. I note that the Company made positive corporate announcements to BSE during the period of February 10, 2011 to March 07, 2011 and the price of the scrip during this period had increased from `58.75 as on February 10, 2011 to `108.85 as on March 18, 2011 (i.e. an increase of 85.28% in 26 trading days). During the period when such announcements were made, the group/ connected entities had traded in the scrip of Exelon. Instances of synchronized, reversal and self-trades among the group entities were also found during the investigation.

6. I note that the stock split of the scrip of the Company (in the ratio of 1:2) had happened on March 23, 2011. During the period of December 08, 2010 to June 13, 2011, the scrip had opened at `19.50 as on December 08, 2010, reached a high of `112.85 as on March 18, 2011 and had closed at `103.60 as on March 23, 2011. On March 24, 2011 (i.e. after stock split), the scrip had opened at `49.25 and closed at `83.80 on June 13, 2011. Considering the stock split on March 23, 2011, the price movement in the scrip was analyzed in 2 patches as detailed hereunder. The table below also discusses, the price movements as well as trading volume in the scrip in both the patches: TABLE - C Period No. of Price & Opening price Closing price Lowest price Highest price Total Volume Tradin Vol. (volume) on (volume) on (volume) (volume) (Avg. no. of shares g days first day of the last day of during the during the traded daily during period the period period period the period) Patch 1: Pre 73 Price `19.50 `103.60 `18.75 `112.85 77,01,534 split patch (08/12/10) (23/03/11) (09/12/10) (18/03/11) (1,05,501) (08/12/10 to Volume 32,694 1,80,401 7,923 4,31,913 23/03/11) (08/12/10) (23/03/11) (22/12/10) (02/02/11) Patch 2: Post 55 Price `49.25 `83.80 `46.40 `87.50 57,09,027 split patch (24/03/11) (13/06/11) (30/03/11) (13/06/11) (1,03,982) (24/03/11 to Volume 33,944 67,669 15,360 3,21,290 13/06/11) (24/03/11) (13/06/11) (27/05/11) (19/04/11)

The investigation revealed that during ‘patch 1’ and ‘patch 2’ of the price rise, the group/ connected entities had traded on all 73 and 55 days respectively.

7. The investigation analyzed the trading of the connected entities and the findings thereof relating to ‘last traded price’ (LTP), ‘new high price’ (NHP) and ‘first trade’ (FT) in the respective patches, are as under:

A. Patch 1 (i.e. 08/12/10 to 23/03/11) i. LTP Analysis: During this patch, the price of the scrip had moved from `19.50 as on December 08, 2010 to a high of `112.85 as on March 18, 2011 and closed at `103.60 as on March 23, 2011. The top 10 group entities contributing to positive LTP is tabulated in the table below: TABLE - D Name of Buy clients Above LTP % of +ve LTP LTP Impact Sum of Qty. No. of Trades to mkt. +ve LTP Shivcharan S. Kashyap 75.15 65931 126 6.40% Jayesh Himmatlal Mehta 72.1 52426 124 6.14% Divyesh Harish Surana 58.6 42633 149 4.99% A.K. Investments 32.55 77265 140 2.77% Gangadhara Rao Ilaparti 24.85 54981 92 2.12% Kantilal Lakshmichand 17.9 11266 23 1.53% Amrit L.Gandhi(HUF) 15.35 50282 76 1.31% Srinvasa Rao Marupudi 14.75 89942 39 1.26% Nishita Danish Merchant 11.85 7240 38 1.01% Salma Sharafat Khan 11.4 102571 26 0.97% Top 10 group entities based on positive LTP 334.5 554537 833 28.50% Total LTP contribution of connected group 417.45 1081524 1115 35.56% Total LTP market wide contribution. 1173.6 2189767 3507 100.00%

From the above table, it is observed that the group entities had contributed to `417.45 in positive LTP (i.e. 35.57% of total market positive LTP) through 1,115 trades. Out of the said 1,115 trades of the group entities, counterparty to 907 trades (by 36 entities) were unconnected entities which contributed to positive LTP of ` 349.65 (i.e. 29.79% of total market positive LTP). Further, the counterparty to remaining 208 trades (by 25 group entities) were the group/ connected entities which contributed to the positive LTP of `67.80 (5.78% of the total market positive LTP). Out of these 25 group entities, persons namely Mr. Shivcharan S. Kashyap, Mr. Jayesh H. Mehta and Mr. Divyesh H. Surana contributed `32.75 to the positive LTP (i.e. 2.79% of total market positive LTP) and the counterparties to such trades were the group/ connected entities.

ii. New High Price (NHP) Analysis: In this patch, on 55 trading days and 208 occasions a NHP was discovered. Out of the 208 trades establishing NHP, 13 entities of the group were found to have been responsible for establishing NHP in as many as 107 instances. The contribution of the group/ connected entities in establishing NHP was `71.05 (i.e. 76.11%) out of the total price of `93.35. A summary of the buy trades by group/ connected entities during Patch 1, that contributed to NHP are as under: TABLE - E Name of clients No. of % to Total % to Traded % to instances total Contri. of total vol.by total vol. Estb. NHP client to Contri. client NHP NHP (`) Shivcharan S.Kashyap 36 17.31% 33.05 35.40% 7054 6.12% Kantilal Laxmichand 4 1.92% 7 7.50% 2503 2.17% Jayesh Himatlal Mehta 11 5.29% 6.8 7.28% 67 0.06% Divyesh Harish Surana 15 7.21% 6.25 6.70% 3819 3.31% A.K. Investments 13 6.25% 4.75 5.09% 29551 25.64% Top 5 contributors to NHP 79 37.98 57.85 61.97% 42994 37.3% Total of connected group as Buyers 107 51.44% 71.05 76.11% 67454 58.53% Total market 208 100.00% 93.35 100.00% 115240 100.00%

An order book analysis of above clients revealed as under: - Mr. Shivcharan S. Kashyap was the top NHP contributor i.e. `33.05 (35.40% of total market NHP) in 36 trades. Out of these 36 trades, in 29 trades contributing `26.95 (28.87% to the total market NHP), the counterparties were found scattered. Out of the remaining 7 trades, in 6 trades the counterparty was Mr. Jayesh H. Mehta which contributed to NHP of `6.05 (6.48% to total market NHP) and the traded quantity was only a single share. An order log analysis for the trades of Mr. Shivcharan S. Kashyap with Mr. Jayesh H. Mehta where Shivcharan is bidder (purchaser) and Jayesh Mehta is seller is reproduced below: TABLE - F Date Order No. Add Buy Order Sell order Trade Buy Sell Trade Buy Sell LTP LTP NHP Trade High Time time Time Order Order Qty. Order Order at contri Contri Price /Low Upd Qty. Qty. Price Price order bution for the entry day Del 16/02/11 15000064000170 add 09:15:00.8 09:15:00.3 09:15:01.3 1 25 1 66.95 66 63.8 2.2 2.2 66 64-66 64.1- 18/02/11 18000067004028 add 09:15:01.8 09:15:00.8 09:15:03.0 1 450 1 70 69.75 67 2.75 1.5 69.75 69.75

72.75- 25/02/11 18000077000099 add 09:15:00.1 09:15:00.3 09:15:00.6 1 450 1 77.9 77 75.7 2.2 1.15 77.9 77.9 72.75- 21/02/11 23000088002554 Add 09:15:02.4 09:15:01.0 09:15:10.9 1 450 1 70 70.75 68.05 2.7 1 70.75 77.9 72.75- 21/02/11 23000088002974 Add 09:16:05.4 09:16:43.2 09:16:43.2 1 450 1 71.45 71.45 71.35 0.1 0.1 71.45 77.9 62.4- 17/03/11 19000083063080 Add 14:58:32.2 09:15:02.3 14:58:32.3 17565 200 200 108 107 106.9 0.1 0.1 107 68.25

From the above, it can be observed that Mr. Jayesh H. Mehta was entering sell order at a price higher than LTP and Shivcharan was matching the sell orders with his buy orders in order to establish NHP with single share. The repeated trades for one share with the same entity cannot be just a mere coincidence and the same hints that these two had indulged in increasing the price of the scrip by establishing the base price for further trades, at a higher price.

- Mr. Divyesh H. Surana was a contributor to NHP for a total of `6.25 in 15 trades. Out of these 15 trades, in 11 trades contributing `3.55 (3.80% to total market NHP) the counterparties were scattered. In three of the remaining 4 trades, the counterparty was Mr. Jayesh H. Mehta and the contribution to NHP was `2.50 (i.e. 2.68% to total market NHP). From the same, it can be said that Mr. Divyesh H. Surana and Mr. Jayesh H. Mehta had indulged in increasing the price of the scrip of the Company by establishing the base price for further trades in the scrip, at a higher price.

- An analysis of the trades of Mr. Jayesh H. Mehta, revealed that he had contributed `6.8 to the NHP in 11 trades out of which, 7 trades contributing `4.45 (4.76% of total market NHP) were with unconnected and scattered entities. For the remaining 4 trades, the counterparty to 1 trade was Jayesh H. Mehta himself contributing `1.45 (1.55% to total market NHP) (self-trade) and counterparty to the rest of 3 entities were 3 different group entities.

iii. First Trade (FT) Analysis: The details of the first trades in the scrip are as follows: TABLE - G

No of Market No of FT Group Group No. of Group Group No. of First Volume % vol.to First Volume buy Purchase FT % to FT Sell Sell FT % to Trade Market trades in of FT Trades by volume Market trades by volume Market within vol. FT Market Group by FT FT (vol.) Group by FT FT (vol) Group 73 10099 50 5841 57.84% 15 1225 12.13% 11 73 0.72% From the table above, it can be observed that the group entities had purchased 5,841 shares and sold 1,225 shares respectively through first trades. Following are the LTP and NHP contribution details for all the first trades: TABLE - H Sum of market LTP Sum of market NHP LTP of FT trades of NHP Contri of the Group (buyer) of FT in ` (buyer) of FT in ` Group (buyer) in ` (buyer) of FT trades in ` 83.45 68.9 87.8 59.95 From the above, it is observed that there was a positive impact on the price of the scrip by first trade carried out by the entities of group entities and the same had a total NHP contribution of `59.95 through first trades (i.e. 87.01% of the market’s NHP). The details of the first trades carried out by the group/ connected entities contributing to the positive LTP, is as follows: TABLE - I Name of client No. of First % of FT First trade NHP first trade to market positive LTP of trades volume FT (Vol.)

Sum (in `) FT Shivcharan Shreedhar Kashyap 17 66 0.85% 42.25 29.25 Jayesh Himmatlal Mehta 8 37 0.48% 9.8 4.55 Divyesh Harish Surana 7 56 0.72% 13.15 4.65 A.K. Investments 4 5551 71.79% 4.35 3.85 Kantilal Lakshmichand 3 3 0.04% 8.7 6.95 Jitendra Laxmichandji Gandhi 2 11 0.14% 5.25 3.45 Jigna Manish Shah 2 2 0.03% 3.5 3.5 Narendra Omprakash Dogra 1 1 0.01% 4 2.85 Bhavnaben Nimeshbhai Mistry 1 1 0.01% 2 0.9 Connected group buyer total 45 5728 74.08% 93 59.95 Total market wide 56 7732 100.00% 106.4 68.9 Out of above 9 persons/ entities, two persons namely Mr. Narendra Omprakash Dogra and Ms. Bhavnaben Nimeshbhai Mistry had executed the first trades in only one instance. Out of the remaining 43 first trades by 7 group/ connected entities, counterparty to 35 trades were scattered and the buy orders of the group entities got matched with the sell orders that were already available in the system for 29 trades contributing `33.85 to NHP (i.e. 49.13% of market NHP through first trades). For the remaining 6 trades, 2 group entities namely Mr. Shivcharan S. Kashyap and Mr. Divyesh H. Surana had placed 4 buy orders for 1 share each and the NHP contribution thereby was `8.05 (i.e.

11.68% to market NHP through first trades). In view of the same, it can be said that Mr. Shivcharan S. Kashyap and Mr. Divyesh H. Surana had entered buy orders with an intention of establishing a new base price, in the scrip during the first trade of the day and manipulated the price of the scrip.

- Further, the counterparty to 8 first trades were found to be the group entities contributing `9.55 to NHP (13.86% to market NHP through first trades) and contributing `15.1 to the positive LTP (14.19% to the market positive LTP through first trades). The details of these 8 trades, is given in the table below: TABLE - J Name of Buy client Name of Sell Client No. of First First trade NHP of First trade positive LTP FT trades volume Sum (in `) Shivcharan Shreedhar Kashyap J ayesh Himmatlal Mehta 4 4 9.85 5.85 Divyesh Harish Surana Jayesh Himmatlal Mehta 1 1 3.8 2.25 Jayesh Himmatlal Mehta Jayesh Himmatlal Mehta 1 10 1.45 1.45 Jayesh Himmatlal Mehta Divyesh Harish Surana 1 5 1.5 0 A K Investments Jayesh Himmatlal Mehta 1 50 0.25 0 Total of above 5 entities 8 70 16.85 9.55 Connected group buyer total 45 5728 93 59.95 Total market wide 56 7732 106.4 68.9

From the above, it can be observed that 3 persons namely Mr. Jayesh H. Mehta, Mr. Shivcharan S. Kashyap and Mr. Divyesh H. Surana had together contributed `9.55 to the market NHP (i.e. 13.86% of market NHP through first trades) through 7 first trades by indulging in increasing the price of the scrip and establishing the base price for further trades in the scrip at a higher price through first trades of the day.

B. Patch 2: (i.e. 24/03/11 to 13/06/11)

i. NHP Analysis: During this patch, the price of the scrip had opened at `49.25 and closed at `83.80 on June 13, 2011 after reaching a high of `87.50 on June 13,

2011 (i.e. an increase of `38.25). On 56 occasions, in 15 trading days NHP was discovered. Out of these 56 trades establishing NHP, 4 group entities are found to have been responsible for establishing NHP in 13 instances. The contribution of group entities in establishing new high prices was `17.40 (45.49%) out of the total price of `38.25. Details of the same are given below: TABLE - K Name of clients No. of % to Total Contri. % to Traded % to instances total of client to total vol.by total vol. estb. NHP NHP NHP (`) Contri. client Shivcharan Shreedhar Kashyap 8 14.29% 13.5 35.29% 9 0.06% Seema Gandhi 1 1.79% 2.7 7.06% 44 0.27% Jitendra Laxmichandji Gandhi 2 3.57% 1 2.61% 700 4.31% Kantilal Lakshmichand 2 3.57% 0.2 0.52% 165 1.02% Total of connected group as 13 23.21% 17.4 45.49% 918 5.65% Buyers Total market 56 100.00% 38.25 100.00% 16246 100.00%

The order book analysis of the above mentioned entities revealed as under: - Mr. Shivcharan S. Kashyap had contributed `13.50 (i.e. 35.29% to market NHP) in 8 trades for a quantity of 9 shares. Out of 8 trades, buy orders of Mr. Shivcharan Kashyap got executed with sell orders which were already existing in the system in 3 trades contributing `1.95 to market NHP (i.e. 5.1% of total market NHP). The remaining 5 trades in which the buy orders were entered first at NHP contributed `11.55 to the market NHP (i.e. 30.20% of market NHP). All these trades were found to be first trades of the day and quantity traded in these trades was only 1 share except in one trade wherein 2 shares were traded. The repeated trades for just single share at NHP cannot be just a mere coincidence and suggests that Mr. Shivcharan S. Kashyap had indulged in increasing the price of the scrip by establishing the base price for further trades in the scrip at higher price.

- Trades of other 3 group entities contributing to NHP during ‘Patch 2’ were also analyzed and it was revealed that counterparty to 4 out of 5 trades were scattered and the buy orders of group entities got executed with those sell orders which had already existed in the system.

ii. First Trade (FT) Analysis: The details of the first trades in the scrip during this patch are as under: TABLE - L No of Market No of Group Group No. of Group Group No. of Vol. % First volume FT buy purchase FT % FT sell sell FT % First vol.to trades in of FT trades volume to trades volume to Trade Market market by by FT market by by FT Market within vol. FT Group FT Group FT group (vol.) (vol.) 55 10725 20 3564 33.23% 3 611 5.70% 1 1 0.72%

- From the above table it can be seen that the group entities had purchased 3,564 shares and sold 611 shares, respectively through first trades. The LTP and NHP contribution details for all the first trades is as under: TABLE - M Sum of market LTP Sum of market NHP LTP of FT trades of NHP Contri of the Group (buyer) (buyer) of FT in (`) (buyer) of FT in (`) Group (buyer) in (`) of FT trades in (`) 27.8 28.85 30.25 16 From the above, it can be seen that there was a positive impact on the price through first trades carried out by the group entities and had a total NHP contribution of `16 through first trades which is 52.89% of the market’s NHP through first trade. The details of the first trades carried out by group/ connected entities who had contributed to the positive LTP variation, is as follows: TABLE - N Name of client No. of First % of FT First trade NHP First trade to market positive LTP of FT trades volume FT (vol.) Sum (in `) Shivcharan Shreedhar Kashyap 13 2017 32.58% 25.45 13.3 Seema Gandhi 1 44 0.71% 2.7 2.7 Divyesh Harish Surana 1 1 0.02% 3 0 Narendra Omprakash Dogra 1 500 8.08% 1.1 0 Elubandi Satyanarayana 1 1 0.02% 0.7 0 Connected group buyer total 17 2563 41.40% 32.95 16 Total market wide 32 6191 100.00% 62.65 28.85

From the above table, it can be observed that Mr. Shivcharan Kashyap had contributed to NHP through first trades repeatedly. He had contributed to positive LTP of `25.45 and NHP of `13.30 in 13 trades.

- Out of the 13 trades, counterparty to 1 trade was a group entity namely Mr. Jayesh Mehta and the LTP contribution for such trade was `0.95. Out of remaining 12 first trades, the buy orders of Mr. Shivcharan Kashyap got executed with sell orders which were pending in the system in 5 trades contributing `8.85 to market positive LTP and `1.75 to market NHP.

The remaining 7 first trades in which the buy orders were entered first had contributed `15.65 to LTP (i.e. 24.98% of market positive LTP through first trades) and `11.55 to NHP (i.e. 40.03% of market NHP through first trades). Further, other 4 entities of the group have executed first trades for 1 day each.

8. Considering the discussion above, it can be said that during the period when the Company and its directors had made misleading advertisements of positive nature, the group/ connected entities had traded in the scrip of the Company. The group entities connected to the promoters/ directors of the Company had manipulated the price of the scrip by contributing `71.05 to NHP out of total market NHP of `93.35 (i.e. 76.11% of market NHP) during the period of December 08, 2010 to March 23, 2011 (i.e. the period of price rise before stock split) by trading in 67,454 shares (i.e. 0.87% of market volume during that period). Further, these entities had manipulated the price of the scrip even after the stock split and contributed `17.40 to NHP out of the total market NHP of `38.25 (i.e. 45.49% of market NHP), during the period of March 24, 2011 to June 13, 2011 (the period of price rise after stock split) by trading in 918 shares (0.02% of market volume during that period).

The trading pattern in the scrip hints that the announcements made by the Company were dissemination to the public with an intention to distort the market equilibrium and the same was a scheme to make illegal gains and defraud the genuine investors. The investigation has alleged that the promoter of the Company (Cementex), directors of the Company and the group/ connected entities have violated the provisions of Regulation 3(a) (b) (c) (d), 4(1), 4(2) (a) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 and made unlawful gains.

9. Gains: Based on the analysis discussed above, it can be said that during the period when the misleading announcements were made by the Company, the directors and other connected entities, had manipulated the price of the scrip of the Company upwards. The unlawful gains made in the scrip has been calculated and given hereunder:

- Profit/ Loss calculation during Patch 1: During this patch, the price of the scrip had opened at `19.50 and had closed at `103.60. Further, 41 group entities have made profit including the promoter Cementex. Details of the same are mentioned below: TABLE - O S. Name Buy Buy Value Sell Sell Value Quantity of Value of shares Profit No. Quantity (in `) Quantity (in `) shares remained remaining at the (in `) at end of this end of this period ( ) / period / held Shares held prior prior to this to this period period (in `) 1 Hiten Vallabhji Haria 187,000 10,030,100 29,769 3,055,179 (157,231) (16,289,132) 9,314,211 2 Cementex (India) P.Ltd. 40,000 1,388,000 363,000 14,464,335 323,000 6,298,500 6,777,835 3 Ronak Ashwin Choksi 174,008 11,270,032 32,800 2,435,565 (141,208) (14,629,149) 5,794,682 4 A.K. Investments 353,356 13,682,681 353,216 18,696,287 (140) (14,504) 5,028,110 5 Divyesh Harish Surana 243,660 13,872,464 178,932 11,423,155 (64,728) (6,705,821) 4,256,512 6 Salma Sharafat Khan 367,428 22,283,901 302,427 19,453,905 (65,001) (6,734,104) 3,904,108 7 Jayesh Himmatlal Mehta 229,151 14,890,412 145,162 8,668,800 (83,989) (8,701,260) 2,479,648 8 Narendra O. Dogra 96,560 5,646,179 87,117 6,667,731 (9,443) (978,295) 1,999,847 9 Kanta Anantrai Desai 6,819 319,549 32,568 2,621,420 25,749 502,106 1,799,766 10 Anjali Tukaram Sogam 12,971 572,897 57,971 2,908,446 45,000 877,500 1,458,049 11 Jitendra L. Gandhi 100,000 7,834,052 99,990 9,267,739 (10) (1,036) 1,434,723 12 Amrit L.Gandhi (HUF) 168,294 8,720,599 142,843 7,441,573 (25,451) (2,636,724) 1,357,698 13 Seema Gandhi 181,250 9,477,907 170,250 9,685,935 (11,000) (1,139,600) 1,347,628 14 Anitha Yarlagadda 20,000 495,925 72,935 2,690,527 52,935 1,032,233 1,162,370 15 Gangadhara Rao Ilaparti 147,820 9,498,062 137,046 9,485,745 (10,774) (1,116,186) 1,103,869 16 Hussain M. Shaikh 50,000 1,033,135 50,000 2,124,938 0 0 1,091,803 17 Veerabhadra Dandamudi 0 0 107,086 3,034,762 107,086 2,088,177 946,585 18 Shivcharan S. Kashyap 172,417 14,293,367 92,833 6,882,162 (79,584) (8,244,902) 833,697 19 Jigna Manish Shah 22,065 910,689 12,065 667,086 (10,000) (1,036,000) 792,397 20 Sneha Pankaj Desai 11,000 533,793 56,000 2,159,657 45,000 877,500 748,364 21 Nishita Danish Merchant 57,473 2,038,736 57,473 2,755,578 0 0 716,842 22 Dhana Energy P.Ltd.

0 0 14,000 943,900 14,000 273,000 670,900 23 Srikrishna Vadlamudi 0 0 45,200 1,430,048 45,200 881,400 548,648 24 Kantilal Lakshmichand 38,295 2,022,405 38,295 2,503,361 0 0 480,956 25 Gudimetla H Sunder 110,318 7,485,900 117,167 8,071,902 6,849 133,556 452,447 26 Shivangi J. Singh 34,394 1,144,596 34,394 1,527,321 0 0 382,725 27 Dimple Pankaj Desai 5,000 175,735 6,683 589,110 1,683 32,819 380,557 28 PVS Gangadhara Rao 9,400 310,440 12,603 686,341 3,203 62,459 313,443 29 Sunil Kumar H. Pal 15,000 1,255,217 0 0 (15,000) (1,554,000) 298,783

30 Venkata Subbarao Yarra 1,925 61,254 5,460 286,016 3,535 68,933 155,830 31 Amrit L.Gandhi 39,861 1,509,742 39,861 1,646,513 0 0 136,771 32 Bhavnaben N. Mistry 20,601 684,706 20,601 812,052 0 0 127,346 33 Yentrapati Ravi 4,944 169,025 10,004 392,000 5,060 98,670 124,305 34 Parul Anupam Khanna 20,000 599,439 20,000 701,000 0 0 101,561 35 Hiten P. Shah 2,800 192,277 2,800 287,896 0 0 95,619 36 Parvathaneni Mounisha 725 27,500 1,725 112,176 1,000 19,500 65,176 37 Marupudi Sree Lakshmi 900 39,195 0 0 (900) (93,240) 54,045 38 Swapna Sri Tummala 0 0 40,244 830,249 40,244 784,758 45,491 39 Satya S. Jonnavithula 10,143 443,817 10,143 453,503 0 0 9,686 40 Piyush Naresh Kothari 0 0 2,039 44,374 2,039 39,761 4,614 41 Shaik Ameer Basha 500 36,748 500 37,750 0 0 1,002 TOTAL 2,956,078 164,950,476 3,003,202 167,946,037 47,124 -55,803,081 58,798,649

- Profit / Loss calculation during Patch 2- During this patch, the price of the scrip had opened at `49.25 and closed at ` 83.8. Further, 31 group entities have made profit including the promoter Cementex. Details of such trades are summarised below: TABLE - P S. Name Buy Buy Value Sell Sell Value Quantity of shares Value of shares Profit No. Quantity (in `) Quantity (in `) remained at end of remaining at the (in `) this period ( ) / end of this Shares held prior to period / held this period prior to this period (in `) 1 Ronak Ashwin Choksi 382,701 24,938,997 411,308 29,740,198 28,607 1,408,895 3,392,306 2 Amrit L.Gandhi(HUF) 60,140 2,915,963 111,042 7,614,827 50,902 2,506,924 2,191,941 3 Hiten P. Shah 170,430 12,846,922 6,753 564,270 (163,677) (13,716,133) 1,433,481 4 Divyesh Harish Surana 53,992 3,951,026 132,466 9,240,479 78,474 3,864,845 1,424,609 5 Jitendra L. Gandhi 89,372 5,338,088 49,392 3,333,504 (39,980) (3,350,324) 1,345,740 6 Dhana Energy P.Ltd. 0 0 47,000 3,515,500 47,000 2,314,750 1,200,750 7 Shivcharan S. Kashyap 303,057 20,762,242 195,693 12,860,191 (107,364) (8,997,103) 1,095,052 8 Cementex (India) P.Ltd.

0 0 41,000 3,034,000 41,000 2,019,250 1,014,750 9 Hiten Vallabhji Haria 0 0 75,669 4,580,720 75,669 3,726,698 854,022 10 Jigna Manish Shah 15,000 719,329 29,000 2,101,483 14,000 689,500 692,654 11 Srinivas Yadav Sher 25,000 1,673,800 40,299 3,005,110 15,299 753,476 577,834 12 Gudimetla H Sunder 12,600 722,500 43,808 2,821,993 31,208 1,536,994 562,499 13 Rama K. Makkena 0 0 20,000 1,522,272 20,000 985,000 537,272 14 Nrupini Jayesh Mehta 52,857 3,624,180 28,865 2,137,841 (23,992) (2,010,530) 524,191 15 Srinvasa Rao Marupudi 67,000 5,145,483 85,000 6,495,500 18,000 886,500 463,517 16 Seema Gandhi 137,962 9,486,462 124,765 8,810,176 (13,197) (1,105,909) 429,623 17 Jayesh H. Mehta 190,130 12,967,843 197,306 13,697,039 7,176 353,418 375,778 18 Mahendra Bhikaji Chile 0 0 12,500 967,375 12,500 615,625 351,750 19 Sunil Kumar H. Pal 94,503 7,281,109 47,102 3,553,393 (47,401) (3,972,204) 244,488 20 Kantilal Lakshmichand 13,046 689,503 13,046 896,447 0 0 206,944 21 Srikrishna Vadlamudi 0 0 6,000 458,100 6,000 295,500 162,600 22 Anitha Yarlagadda 5,000 245,000 3,200 253,920 (1,800) (150,840) 159,760 23 Elubandi Satyanarayana 46,037 3,010,189 50,437 3,381,358 4,400 216,700 154,469 24 Veerabhadra R. 7,500 439,872 5,526 426,190 (1,974) (165,421) 151,739 Dandamudi 25 Hussain M. Shaikh 6,962 507,243 0 0 (6,962) (583,416) 76,173

26 Gangadhara Rao Ilaparti 45,538 3,039,351 54,306 3,545,537 8,768 431,824 74,362 27 PVS Gangadhara Rao 0 0 2,700 195,261 2,700 132,975 62,286 28 Bhavnaben N. Mistry 1,000 55,250 0 0 (1,000) (83,800) 28,550 29 A.K. Investments 10,000 531,261 10,000 554,000 0 0 22,739 30 Venkata S. Yarra 475 31,666 750 50,953 275 13,544 5,743 31 Amrit L.Gandhi 835 44,923 835 50,088 0 0 5,165 TOTAL 1,791,137 120,968,202 1,845,768 129,407,725 54,631 -11,383,262 19,822,787 Note – Calculation of unlawful gains under various scenarios is as under: i) When sell quantity = Buy quantity during the period, Profits made = Sell Value - Buy value ii) When sell quantity > Buy quantity during the period, Profits made = Sell Value - Buy value - Value of shares held prior to this period. iii) When sell quantity < Buy quantity during the period, Profits made = Sell Value - Buy value + Value of shares remaining at the end of this period. From the above tables, it is observed that by manipulating the price of the scrip, establishing NHP through first trades alongwith the corporate announcements of positive nature, the promoter/ director connected entities have made a profit of about `7.86 crore (i.e. `5.88 crore + `1.98 crore).

10. As the alleged gains were made during December 2010 to June 2011, it becomes reasonable and necessary to levy an interest at the rate of 12% simple interest per annum. The gains along with the interest are calculated as follows:

TABLE – Q: Summary of the profits made by the group entities S. No. Name of Entity PAN No. Profit (`) Interest @12%p.a.* Total (`) 1 Hiten Vallabhji Haria AAAPH6890H 10,168,233 6,060,824 16,229,057 2 Cementex (India) P.Ltd. AAACC9265A 7,792,585 4,644,808 12,437,393 3 Ronak Ashwin Choksi ADDPC2938D 9,186,988 5,475,948 14,662,936 4 A.K. Investments AANFA6009Q 5,050,849 3,010,583 8,061,432 5 Divyesh Harish Surana DALPS0578H 5,681,121 3,386,259 9,067,380 6 Salma Sharafat Khan BVSPK9348F 3,904,108 2,327,062 6,231,170 7 Jayesh Himmatlal Mehta AIFPM2216D 2,855,426 1,701,990 4,557,416 8 Narendra Omprakash Dogra AJMPD8729N 1,999,847 1,192,018 3,191,865 9 Kanta Anantrai Desai AAEPD6006F 1,799,766 1,072,759 2,872,525 10 Anjali Tukaram Sogam CGNPS1443N 1,458,049 869,077 2,327,126 11 Jitendra Laxmichandji Gandhi AACPG6473H 2,780,463 1,657,308 4,437,771 12 Amrit L.Gandhi(HUF) AAJHA4701R 3,549,639 2,115,779 5,665,418 13 Seema Gandhi AAEPG0960B 1,777,251 1,059,339 2,836,590 14 Anitha Yarlagadda ACAPY5774B 1,322,130 788,062 2,110,192 15 Gangadhara Rao Ilaparti AANPI9650F 1,178,231 702,290 1,880,521 16 Hussain Mohammed Shaikh BSSPS2832P 1,167,976 696,178 1,864,154 17 Veerabhadra Rao Dandamudi ABVPD6656R 1,098,324 654,661 1,752,985 18 Shivcharan Shreedhar Kashyap ATOPK6636K 1,928,749 1,149,640 3,078,389 19 Jigna Manish Shah ANQPS6789P 1,485,051 885,172 2,370,223 20 Sneha Pankaj Desai AIBPD1454A 748,364 446,066 1,194,430 21 Nishita Danish Merchant AMHPM8133B 716,842 427,277 1,144,119

22 Dhana Energy P.Ltd. AACCV7693M 1,871,650 1,115,606 2,987,256 23 Srikrishna Vadlamudi ADNPV5504C 711,248 423,943 1,135,191 24 Kantilal Lakshmichand ADSPK7577K 687,900 410,026 1,097,926 25 Gudimetla H Sunder BMLPS9664N 1,014,946 604,963 1,619,909 26 Shivangi Jagmohan Singh AOSPS5911E 382,725 228,125 610,850 27 Dimple Pankaj Desai AUQPD3909F 380,557 226,833 607,390 28 PVS Gangadhara Rao AKYPP5600M 375,729 223,955 599,684 29 Sunil Kumar Hariprasad Pal BKSPP6938B 543,271 323,819 867,090 30 Venkata Subbarao Yarra AAPPY4270P 161,573 96,306 257,879 31 Amrit L.Gandhi AACPG5265H 141,936 84,602 226,538 32 Bhavnaben Nimeshbhai Mistry ALIPM5347B 155,896 92,923 248,819 Mewada 33 Yentrapati Ravi ABWPY6767F 124,305 74,093 198,398 34 Parul Anupam Khanna BCUPK8420R 101,561 60,536 162,097 35 Hiten Pravinchandra Shah AHAPS0889A 1,529,100 911,427 2,440,527 36 Parvathaneni Mounisha BAOPP1399G 65,176 38,848 104,024 37 Marupudi Sree Lakshmi ALYPM2964Q 54,045 32,214 86,259 38 Swapna Sri Tummala ALDPT7720Q 45,491 27,115 72,606 39 Satya Suryanarayana Jonnavithula ACRPJ9665R 9,686 5,773 15,459 40 Piyush Naresh Kothari AEOPK1882L 4,614 2,750 7,364 41 Shaik Ameer Basha AEZPB3408A 1,002 597 1,599 42 Srinivas Yadav Sher AUAPS8547G 577,834 344,421 922,255 43 Rama Krishna Makkena BCKPK1101P 537,272 320,244 857,516 44 Nrupini Jayesh Mehta BDTPM2261E 524,191 312,447 836,638 45 Srinvasa Rao Marupudi ACQPM0876L & 463,517 276,282 739,799 BCDPM3124P 46 Mahendra Bhikaji Chile AHNPC8127G 351,750 209,662 561,412 47 Elubandi Satyanarayana DGCPS7022F 154,469 92,072 246,541 TOTAL 78,621,436 46,862,682 12,54,84,118 * Interest calculated on illegal gains from 14/06/2011 till 01/06/2016

From the above table, it can be observed that the above persons/ entities had made alleged illegal profits to the tune of `12.54 crore in aggregate including interest through trading in the scrip of Exelon.

11. I note that the persons/entities are aware of the investigations as also the likely findings of the investigation, in the light of the evidences gathered during the investigation. All these factors point to the possibility that the persons/ entities involved may divert the unlawful gains. Therefore, in order to prevent such persons/ entities from diverting the funds and to safeguard the interests of securities market, it becomes necessary for SEBI to take urgent preventive steps of impounding and retaining the proceeds by way of an interim measure.

12. Accordingly, as an interim measure, an ad-interim ex-parte Order for impounding such alleged profits under Section 11(4)(d) of the Securities and Exchange Board of India Act, 1992 needs to be issued against– TABLE – R S. No. Name Permanent Account Number 1 Exelon Infrastructure Limited AAACM2862M 2 Cementex (India) Pvt. Limited AAACC9265A 3 Srinivasa Rao Marupudi ACQPM0876L, BCDPM3124P 4 Gadde B. Tirupati Rao AHUPG9920A 5 Ravi Chakravati AJXPR4789F 6 M. Vishnuvardhan Rao ABYPM0993M 7 P R K Venkatamurthi AFQPP6066G 8 Srinivas Yadav Sher AUAPS8547G 9 Shaik Ameer Basha AEZPB3408A 10 Sree Lakshmi Marupudi ALYPM2964Q 11 Hiten Vallabhji Haria AAAPH6890H 12 A.K. Investments AANFA6009Q 13 Narendra O. Dogra AJMPD8729N 14 Kanta Anantrai Desai AAEPD6006F 15 Anjali Tukaram Sogam CGNPS1443N 16 Jitendra L. Gandhi AACPG6473H 17 Amrit L.Gandhi(HUF) AAJHA4701R 18 Gangadhara Rao Ilaparti AANPI9650F 19 Hussain M. Shaikh BSSPS2832P 20 Jigna Manish Shah ANQPS6789P 21 Sneha Pankaj Desai AIBPD1454A 22 Nishita D. Merchant AMHPM8133B 23 Dhana Energy P.Ltd. AACCV7693M 24 Srikrishna Vadlamudi ADNPV5504C 25 Kantilal Lakshmichand ADSPK7577K 26 Gudimetla H Sunder BMLPS9664N 27 Shivangi J. Singh AOSPS5911E 28 Dimple Pankaj Desai AUQPD3909F 29 PVS Gangadhara Rao AKYPP5600M 30 Sunil Kumar H. Pal BKSPP6938B 31 Venkata Subbarao Yarra AAPPY4270P 32 Amrit L.Gandhi AACPG5265H 33 Bhavnaben N. Mistry ALIPM5347B 34 Yentrapati Ravi ABWPY6767F 35 Parul Anupam Khanna BCUPK8420R 36 Hiten P. Shah AHAPS0889A 37 Parvathaneni Mounisha BAOPP1399G 38 Swapna Sri Tummala ALDPT7720Q 39 Satya S. Jonnavithula ACRPJ9665R 40 Piyush Naresh Kothari AEOPK1882L 41 Nrupini Jayesh Mehta BDTPM2261E

42 Mahendra Bhikaji Chile AHNPC8127G 43 Elubandi Satyanarayana DGCPS7022F 44 Rama Krishna Makkena BCKPK1101P 45 Anitha Yarlagadda ACAPY5774B 46 Salma Sharafat Khan BVSPK9348F 47 Seema Gandhi AAEPG0960B 48 Ronak Ashwin Choksi ADDPC2938D 49 Veerabhadra D. ABVPD6656R 50 Divyesh Harish Surana DALPS0578H 51 Jayesh H. Mehta AIFPM2216D 52 Shivcharan S. Kashyap ATOPK6636K

13. In view of the foregoing, in order to protect the interest of the investors and the integrity of the securities market, I, in exercise of the powers conferred upon me by virtue of section 19 read with sections 11(1), 11(4)(d) and 11B of the SEBI Act, 1992, hereby impound the alleged unlawful gains of a sum of `12,54,84,118 (alleged gain of `7,86,21,436 + interest of `4,68,62,682 (from 14/06/2011 to 01/06/2016), jointly and severally from persons/entities tabulated in the paragraph 12 above.

14. The Banks are directed that no debits shall be made, without permission of SEBI, in respect of the bank accounts held by all the persons/entities tabulated in paragraph 12 above, except for the purposes of transfer of funds to the escrow account as directed in paragraph 13 above. Further, the Depositories are also directed that no debit shall be made, without permission of SEBI, in respect of the demat accounts held by the above said persons. However, credits, if any, into the accounts maybe allowed. The Banks and the Depositories are directed to ensure that all the above directions are strictly enforced. Further, debits may also be allowed for amounts available in the account in excess of the amount to be impounded. Banks are allowed to debit the accounts for the purpose of complying with this Order.

15. The persons/ entities tabulated in paragraph 12 above are also directed not to dispose off or alienate any of their assets/properties/securities, till such time the amounts mentioned in paragraph 13 are credited to an escrow account {“Escrow Account in Compliance with SEBI Order dated June 07, 2016 – A/c (in the name of the respective persons/entities)”} created specifically for the purpose in a Nationalized Bank. The escrow account/s shall create a lien in favour of SEBI and the monies kept therein shall not be released without permission from SEBI. On production of proof by any of the persons, mentioned in paragraph 14, that the said money is deposited in the escrow account, SEBI shall communicate to the Banks and Depositories to defreeze the accounts.

16. Further, the persons/ entities tabulated in paragraph 12 above are directed to provide, within 7 days of this order, a full inventory of all their assets and properties and details of all their bank accounts, demat accounts and holdings of shares/ securities, if held in physical form and details of companies in which they hold substantial or controlling interest.

17. The above direction shall come into force with immediate effect.

18. This Order is without prejudice to the right of SEBI to take any other action that may be initiated against the 52 persons/entities covered under this Order, in accordance with law. The persons/ entities against whom this Order has been passed may file their replies to SEBI within 21 days from the date of receipt of this order, if they so desire. They may also indicate in their replies whether they wish to avail an opportunity of personal hearing in the matter.

Date: June 07, 2016 PRASHANT SARAN Place: Mumbai WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA